Cramer: DC euphoria won't last

Mad Money host Jim Cramer digs into the latest short-covering action as the government remains shut down, and looks ahead to the earnings season. "Enjoy the short-covering rally because it doesn't help EPS or earnings outlooks," he says.

Euphoria swept the Street on Thursday with the Dow Jones Industrial Average surging 323 and the S&P 500 gaining 36. Largely buyers raced into the market when chatter suggested lawmakers were nearing a compromise.

Happy days are here again, no?

Cramer isn't so sure.

"Earnings season is upon us," reminded Cramer, "and I have to tell you I don't think the euphoria of the moment will last after the Street starts hearing conference calls."

That is, once the rhetoric dies down, the market will likely turn attention to fundamentals and earnings aren't likely to wow crowds anytime soon.

"Take the two biggest sectors in the market," said Cramer. "First there's tech. I struggle to find an area of this sector that I am not worried about. PC sales aren't going well. That's bad for Intel, Microsoft and all of the parts makers."

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"Then there are banks," Cramer added. "These earnings are from the quarter when mortgage rates spiked big and business softened. Do you think that's a recipe for making numbers?"

The Mad Money host is also concerned about integrated oil after Chevron warned that third-quarter earnings would be "significantly lower" because fuel margins were squeezed in its refining division. And he's been skeptical of retail for quite some time, fearing people are spending less on apparel so they can make over-due home improvements.

And that doesn't even take into account the weakness generated at the end of the quarter from the anticipation of a shutdown, as business prepared for the worst.

"Once the deal is done, I mean really done, we are going to be stuck with what Washington did to corporate earnings. And believe me when I say, the government single-handedly will have generated more downside surprises than we've heard in many a quarter."